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ACCA Applied Knowledge · Business and Technology · Environmental and sustainability factors

Karvel Ltd, a manufacturer, wants to reduce waste by redesigning its products so that at the end of their life the materials can be recovered and reused in new products, rather than being disposed of. Which approach is Karvel adopting?

Karvel is applying circular economy principles. This approach designs products so materials are recovered and reused at end of life, reducing waste and resource extraction, in contrast to the linear take-make-dispose model. Offsetting, audits and stakeholder mapping do not involve redesigning products for material recovery.

  1. ACarbon offsetting
  2. BCircular economy principlesCorrect
  3. CEnvironmental auditing
  4. DStakeholder mapping

Explanation

A circular economy keeps materials in use through reuse, recycling and recovery, rather than the linear take-make-dispose model. Carbon offsetting compensates for emissions elsewhere, an environmental audit is a review of performance, and stakeholder mapping analyses stakeholder power and interest.

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